pension and the triviality rules

sandraroffey

any advice here please. i have a very small pension with prudential and i have been trying t get them to let me have whats left of it as a lump sum as per the triviality rules. the total would be around 8k. the monthly amount i get is just over £34. hardly a life changing amount!! however, they just wont agree to let it happen. i have had a couple of letters from them, bleeting about how i am supposed to be making an income for myself without relying on the state, (on £34 a month???). however, one thing that keeps being said is that it is at the discretion of the company and the company is saying no. prudential did say that they, 'along with most other providers are refusing these requests'. now, if that is the case, what on earth is the point of the new legislation that has been put in place. it must cost them more in administration to pay me, than what they pay me!! and to have that as a lump sum could make things a lot easier for me. i pay more than than on interest on credit. it could all be paid off and i could live a little more normally. anyone any ideas on how to approach this one??? thanks a lot.xxx

terryw

sandraroffey wrote: »

any advice here please. i have a very small pension with prudential and i have been trying t get them to let me have whats left of it as a lump sum as per the triviality rules. the total would be around 8k. the monthly amount i get is just over £34. hardly a life changing amount!! however, they just wont agree to let it happen. i have had a couple of letters from them, bleeting about how i am supposed to be making an income for myself without relying on the state, (on £34 a month???). however, one thing that keeps being said is that it is at the discretion of the company and the company is saying no. prudential did say that they, 'along with most other providers are refusing these requests'. now, if that is the case, what on earth is the point of the new legislation that has been put in place. it must cost them more in administration to pay me, than what they pay me!! and to have that as a lump sum could make things a lot easier for me. i pay more than than on interest on credit. it could all be paid off and i could live a little more normally. anyone any ideas on how to approach this one??? thanks a lot.xxx

This is news to me. Like you, I thought this was now the law. Bump Bump.
Any thoughts kind MSEers?

terryw

EdInvestor

Have a word with TPAS and if it's clear that you are entitled to do trivial commutation on a pension already in payment, complain to the ombudsman.

http://www.pensionsadvisoryservice.org.uk/

terryw

EdInvestor wrote: »

Have a word with TPAS and if it's clear that you are entitled to do trivial commutation on a pension already in payment, complain to the ombudsman.

http://www.pensionsadvisoryservice.org.uk/

Thanks for that Ed. Bump bump. Any other ideas kind folks?

terryw

Retired_I.F.A.

It is as I understand it at the discretion of the company ( Pru told me the same) so im my case (aged 50 with a PP fund of £7000) i thought what the hell it'll never amount to anything significant anyways so I transfered it into a drawdown plan that gave me a couple of grand cash and £300 initially a year taxable income.

Should be enough to cover a months phone calls to my columbian cough "coffee" suppliers who provide my real tax free pension

sandraroffey

thats what i had when i first started drawing the pension, a small lump sum then £34 a month for ever. it was only 11k at the outset and must be about 7-8 now. you are right, it will amount to nothing, but could make my life a lot easier as a lump. is there any way around this 'at the discretion of the company'? i am going to complain the the ombudsman, but if it is at prudentials discretion, are they going to change their mind i wonder??
clearly they dont want to part with the dosh!!!!!

littleowl

Could anyone give an idiot's guide to the triviality rules? I have looked at the various news items but they seem neither clear nor concise.
In my case I receive a small endowment pension via the Prudential which was bought with AVCs alongside my Teachers' pension and it would be a great help if it could be commuted.

Retired_I.F.A.

http://www.pensionsadvisoryservice.org.uk/personal_and_stakeholder_pensions/triviality/

is the best i can find.

treliac

This is what Prudential say themselves !

http://scottish-amicable.com/content/acrobat/DBST10013.pdf

The Pensions Ombudsman will help if necessary - TPAS will point you in the right direction.

http://www.pensionsadvisoryservice.org.uk/contact_tpas/

averageguy11

I thought u had to be at least 60 re trivial rules..and i presume not to have taken the tax free cash element..but hey what do i know

EdInvestor

Basically you need to be aged 60 and to have total pensions (excluding state) worth a max of around 17,500 (figure increases annually) to use the triviality rule.

So anyone with a teachers pension would not be eligible.